Aid Battle Deferred By Council

June 21, 1985|By Manuel Galvan and James Strong.

The Chicago City Council deferred action Thursday until at least Monday on Mayor Harold Washington`s latest attempt to break the deadlock over the city`s plan for spending $126.7 million in federal Community Development Block Grant funds.

The city faced a Friday deadline for submitting a spending plan to the federal government, but officials said the council`s failure to take action probably won`t jeopardize the funds.

Officials said the first deadline of June 1, which the city also missed, and the latest deadline had been set to give the U.S. Department of Housing and Urban Development time to review the proposal before July 1, the start of the funding year for city agencies receiving money under the program.

``There really isn`t an absolute deadline of July 1,`` said Richard Wilson, regional director of Community Planning and Community Development for the Chicago office of HUD. ``The regs (regulations) give an absolute deadline of the first day of September.``

Washington introduced the administration`s latest version of a spending plan at a special council session Thursday. But the package was referred to the council`s Finance Committee, which is not scheduled to meet until Monday. The next scheduled council meeting at which the plan can be approved is Wednesday.

After the council adjourned the brief session, Alton Miller, the mayor`s press secretary, warned that as many as 1,300 city employees in four departments could face layoffs July 1 unless new spending is authorized.

However, Miller hedged on the impact on community service agencies that provide service in low- and moderate-income areas. He conceded that some agencies could continue their programs for 30 days and some into September.

Aldermen in both council factions insisted there was enough money in current funding to provide money at least through the end of July.

Under a continuing resolution, the council could approve a measure to allocate left-over community development money to prevent the layoffs, Miller conceded. But, he asked, ``I wonder if they would?`` referring to the anti-administration majority bloc.

Ald. Roman Pucinski (41st), a member of the majority bloc, said his group would act to prevent the layoffs.

Last week, the council majority bloc aldermen passed their version of the package, which shifted about $10 million to their wards. Last Friday, Washington said he would veto the plan.

At Thursday`s meeting, Ald. Timothy Evans (4th), the mayor`s floor leader in the city council, referred Washington`s new plan to the Finance Committee, headed by Ald. Edward Burke (14th), a leader of the anti-administration majority bloc.

``Our stategy was to refer it (the $126.7 million package) to the Finance Committee,`` Evans said. ``We hoped the committee would meet Friday morning and the full council immediately afterwards.``

An original deadline of June 1 was extended because a compromise package could not be worked out between the majority bloc and the administration.

Wilson said the federal government would probably grant another extension, but said it would make review extremely difficult.

``Normally, we need 30 days` review time,`` Wilson said. ``That`s why the June 1 deadline. Our review time now has been cut down to two days if the plan is approved next week.``

As to the July 1 deadline, Wilson said the city is not really in immediate danger of losing federal funding.

The danger, Wilson said, is for the community`s social service agencies, which will not be able to receive new funding until the plan is approved.